Saudi Press

Saudi Arabia and the world
Saturday, Jul 12, 2025

People could be asked to watch educational video before investing

People could be asked to watch educational video before investing

Financial Conduct Authority says current ‘risk warnings’ are often ignored by consumers
People looking to put money into higher-risk investments could be required to watch educational videos or pass an online test first, the City regulator has suggested.

The Financial Conduct Authority said the current “risk warnings” on investments were often ignored by consumers, and it also floated the idea that people might have to disclose their salary and other personal information as part of the sign-up process for certain products.

The regulator is concerned that too many investors – particularly a new breed of mainly younger DIY investors – are taking big financial risks by putting money into products that may be inappropriate for them, such as cryptocurrencies and foreign exchange, and could end up losing some or all of their cash.

It has expressed concern about the growing influence that sites such as YouTube, Instagram and TikTok are wielding.

Some commentators say the FCA has been stung by criticism over its mishandling of previous high-risk investment schemes that have gone wrong. It has been slated over its failure to properly regulate the “mini-bond” firm London Capital & Finance (LC&F) before it collapsed in 2019. Taxpayers now face a £120m bill for compensating thousands of people who lost money in that scandal.

Publishing proposals to strengthen the rules relating to “financial promotions”, the FCA said: “Too often consumers are investing in high-risk investments they don’t understand and [which] can lead to significant and unexpected losses.”

Other investments defined as potentially high-risk include investment-based crowdfunding and peer-to-peer lending.

Many financial adverts and websites carry warnings along the lines of “your capital is at risk”, but the FCA said these were often perceived as “white noise” by many investors.

Some investments already carry restrictions, but the regulator said it wanted to do more to prevent people from simply “clicking through” and signing up for risky products they did not understand and which did not match their risk appetite.

It said measures it might consider included requiring would-be investors to watch educational videos on topics such as investment risk and “the benefits of diversification”, and flushing out those people who were not sufficiently knowledgable about financial products by requiring that they take, and pass, an online test.

Other ideas floated include introducing “frictions” into the process such as requiring a text message confirmation before an investment is made, and making people provide additional information such as details of their salary, net assets and how much they have previously invested in other high‑risk schemes.

Becky O’Connor, head of pensions and savings at the website Interactive Investor, said: “In a world of TikTok investment influencers and bitcoin advertisements on the London Underground, and at a time when some people are feeling flush after lockdown and keen on finding quick ways to make a profit, there are real risks that people will succumb to high-risk investments that aren’t right for their circumstances.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
×